Commentary and analysis on markets, personal finance, and wealth building from a contrarian perspective. "I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting there and trying to dream it up all yourself. Nobody’s that smart."
— Charlie Munger
The Central Bank of
Cyprus has significantly upgraded its projections over the growth of the
Cypriot economy in 2016 citing “better than expected recent economic indicators
as well as preliminary data for Cyprus` GDP in the first quarter.”
According to the
CBC’s bi-annual economic bulletin, the Cypriot economy will grow by 2.7%
in 2016 from 2.0% in the December`s Bulletin, while economic growth in
2017 will accelerate to 2.9% from 2.7% in the previous projection. The CBC also
estimates economic growth will reach 3.3% of GDP in 2018.
“The banking sector is recovering with the
latest data suggesting that non-performing loans may have reached their peak,”
the CBC points out, pointing out “loan
write downs have significantly increased in March 2016 pursuant to the broader
effort towards the banking sector consolidation."
Bailed-out Cyprus has recorded its best ever tourist
arrivals figures for the month of May, tourism officials said on Friday.
The state-run Cyprus Tourism Organization said in a
statement the 364,943 tourists who arrived on the eastern Mediterranean island
in May were the “highest ever recorded” for that month.
In May there was an 18.7 percent hike in arrivals compared
with the same month in 2015 when 307,449 arrived, indicating that the economy
is on an upward curve, official data showed.
Even the central bank of Cyprus is saying the worst is over for the banking sector and the economy is rebounding nicely with tourism setting records. I expect that Cyprus will see many tourists that would have went to other resort areas that are in Muslim countries like Egypt, Tunisia, Turkey, etc... The listing of Bank of Cyprus in London sometime in the third quarter coupled with declining bad loans should be a catalyst for a higher share price. The backing of several billionaires (Wilbur Ross) versed in turning around various businesses doesn't hurt either.